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Internet Hall of SHAME: Fiver´s 52.75 % commission fees !!!

by austria Banned
20 replies
Because of the last changes in the fees commissions structure that Fiver
charges from all its users, the percentage that they practically take
for each transaction through Fiver website is a whopping
mindblowing 52.75 % !!!

Freelancer for example charges 3% - 10%, but Fiver charges
52.75 % currently:

On each transaction, the buyer pays for one gig 5.50 $
and the seller gets 3.60 $ out of this.

So 1.90 $ goes in fees for Fiver, 1.90 $ / 3.60 $ = 52.75 %

Me and all my friends have went running away from such a SHAME

What are your thoughts on the 52.75% commissions that Fiver pockets
for each gig?
#5275 #commission #fees #fiver´s #hall #internet #shame
  • Profile picture of the author Brent Stangel
    What are your thoughts on the 52.75% commissions that Fiver pockets for each gig?
    Just another reason to build your own business vs someone else's.
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  • Profile picture of the author sbucciarel
    Banned
    I use fiverr to buy some gigs and as long as the vendors keep delivering, I'll keep buying. However, I would never work for that kind of money for anything and fiverr's take on it is ridiculous.
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  • Profile picture of the author IMeasierluck
    [DELETED]
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    • Profile picture of the author komrad2
      It wouldn't hurt starting a microbusiness on Fiverr to test the demand, but with these commissions you'll be better off going on Elance or similar networks where your share is much bigger.
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  • Profile picture of the author rft16
    [DELETED]
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    • Profile picture of the author Ron Killian
      Originally Posted by rft16 View Post


      While you are talking about fees, consider pondering some light on Envato fees.
      I am just surprised they get away with paying only once. Why so many promote the products. That model sure doesn't make sense for affiliates.
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      • Profile picture of the author Michael Shook
        Often changes in fees like this are precursor to the business itself failing financially.

        The problem with percentages - like many statistics - is that you can use them to emphasize or de-emphasize the aspect of a situation. The OP's calculation is done correctly but the numbers used to begin with are not what are commonly used to figure profits.
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  • Profile picture of the author Raydal
    When prices are that small people seldom calculate percentages,
    but I always thought that the Fiverr fee structure was outrageous.
    Even at $1/$5, which is 20% that was high. These services are
    based on the idea that THEY would bring you traffic from their
    platform, so you are paying for this traffic. But you have to
    promote your Gig if you intend to make money, so the "natural"
    traffic idea doesn't work.

    But every seller have a choice where they want to sell their
    wares.

    -Ray Edwards
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  • Profile picture of the author cooler1
    Originally Posted by austria View Post

    On each transaction, the buyer pays for one gig 5.50 $
    and the seller gets 3.60 $ out of this.
    I thought the seller earned about $3.90 per gig.
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    • Profile picture of the author Alexa Smith
      Banned
      The service-provider gets $3.92 out of the $5.50 paid, which is 71.3%.

      Fiverr gets $1.50, which is 27.3%.

      The "other" $0.08 goes to PayPal.

      The OP may have learned arithmetic and percentages in a different place from others here (maybe that's just "new math"?!) but he has a point that Fiverr's commission percentage is rather on the high side.


      .
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  • Profile picture of the author edmltw
    How about clickbank vendors that takes 50% of your commissions earned?

    Ed
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    • Profile picture of the author C G
      Originally Posted by edmltw View Post

      How about clickbank vendors that takes 50% of your commissions earned?

      Ed
      Good point
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    • Profile picture of the author Oziboomer
      Originally Posted by edmltw View Post

      How about clickbank vendors that takes 50% of your commissions earned?

      Ed
      I think you'll find Clickbank vendors are paying you varying commissions up to 75% not taking anything from any affiliate.

      The vendors create the products, set up the funnels and pay good commissions to affiliates and many pay good bonuses too along with providing the tools to promote.

      When I last checked and correct me if I'm wrong but Clickbank charges vendors 9.25%

      If you are an affiliate and you have an inactive account or don't meet their CDR then they do have possibly what some people may consider unreasonable fees but that is public knowledge.

      In the real world if you work for commission in many industries the commissions vary between 2-10% at best. Think of real estate or white goods for example.

      People who work for fiverr need to have a plan to generate sales outside of fiverr.

      In any industry there is always someone who can charge less. Some of those people are dumber than you and others are smarter. Time usually sorts out the smart ones.
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      • Profile picture of the author ClickBank
        Originally Posted by Oziboomer View Post

        When I last checked and correct me if I'm wrong but Clickbank charges vendors 9.25%
        Hi Oziboomer,

        When we sell a product to a consumer, we buy the product from the vendor at a wholesale rate which is 92.5% of the retail price, less a dollar. In essence, this works out to a 7.5% + $1 rate for standard product sales. For subscription sales at or below $40 retail value, we charge a 9.9% + $0 rate. For subscriptions above $40, it is the same as our 7.5% + $1 rate. Full details available from our Retail and Wholesale Pricing section on our Accounting Policy page.

        Thanks,
        The ClickBank Team
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        • Profile picture of the author mittel
          First of all it's not 52.75%
          If buyers pay $5.50 and seller gets $3.60 that means he earns 3.60/5.50x100=65.5%.
          So fiverr almost takes around 35% which is still way to high.

          But there are still people who make a lot of money with fiverr by selling Upgrade gigs. The traffic is allready there. Just go into a niche that is not saturated like webdesign.

          Good luck
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          • Profile picture of the author austria
            Banned
            Originally Posted by mittel View Post

            First of all it's not 52.75%
            If buyers pay $5.50 and seller gets $3.60 that means he earns 3.60/5.50x100=65.5%.
            So fiverr almost takes around 35% which is still way to high.
            You wanted to write "too high" (and not "to high")

            Seller gets $ 3.60, the commission fees are $ 1.90 , that means
            that from the point of view of the seller, the commission fees are 1.90 / 3.60 x 100 = 52.78 %

            Basic second grade maths...
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  • Profile picture of the author MattBrighton
    I started off on fiverr and it was great making money to start with as the audience / customers were already there - saved me a job on advertising. But I wouldn't work for that price again.
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  • Profile picture of the author Jezreel Pigott
    Fiverr isn't a business, its a RESOURCE, treat it as such. Start your own empire and quit being a peon working for crumbs.
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  • Profile picture of the author Peter Kontango
    how did you get the $ 3.60 number? I knew it was $4... surely you don't extract after every transaction...
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    hmm

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  • Profile picture of the author Gary Huynh
    Well if they're going to charge the customer $5.50 they should change their name to fivefiftyerr.

    If you're going to use any of these sites which charge high fees then be smart about it and leverage the leads for future profits. Build a customer list and market via your own channels.
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    • Profile picture of the author heavysm
      Others will have their views, but there are ways for sellers to collect buyers from fiverr so you can communicate with them directly thus creating much larger margins for themselves.

      I have a graphics designer, writer and several other service experts whom i met on fiverr. Of course this is against fiverr's rules, terms of service...whatever it is and i could get banned.

      I have, however, been doing this for about 3+ years now, and fiverr hasn't found a way to stop me (as buyer contacting sellers outside the system), and they could potentially ban me if they found out.

      But i don't remotely mind because I've found solid providers who love that i've connected with them in the way that I did so they receive more $$ and i receive stellar services for not too much more than i was being charged before.

      The difference here, of course, is that they get the full amount i pay them, minus paypals fees, and we're both very happy.
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